Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 32,368 93,813 $ 38,971 68,198 $ 38,230 53,075 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 548,614 $ 140,703 Long-term notes payable Common stock, $10 par value Retained earnings $ 80,727 107,689 162,500 122,027 116,772 10,528 295,133 101,077 162,500 144,334 89,244 9,932 266,598 $ 472,943 55,965 4,423 246,407 $ 398,100 $ 52,549 87,100 162,500 95,951 Total liabilities and equity $ 548,614 $ 472,943 $ 398,100 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?